Lendlease Annual Report 2022

Governance 75 Our Customers Material Issue: Understanding our customers and responding to changes in the market. Designing and delivering innovative, customer driven solutions to win the projects we want to win and ultimately deliver the best places. The Board and its committees undertook the following activities as part of its support of the Group’s customer focused approach and to embed a process of continuous improvement based on customer insights and actions. Activities and actions: • Received a presentation on the future of workplace as the world emerges from the pandemic. • Received reports following endorsement of the Group Customer Complaint Handling & Feedback Policy, which set a minimum standard across the Group. Continued to receive reports on customer engagement, types of complaints and resolution timeframes for every region, under the Group Customer Complaint Handling & Feedback Policy. • Continued to receive reports on the progress against prescribed metrics for the Australian Government Payment Times Reporting Scheme for small business suppliers. • Received external reports on the measuring of Board effectiveness as viewed by external investors. Endorsed the engagement program of major Board stakeholders through FY22. • Received a report from the Asia CEO on key customer relationships relevant to the Senior Living business in Asia during the extended lockdown in Shanghai. Our People Material Issue: Attracting, developing and retaining diverse talent. Ensuring we have the right capability across the organisation to deliver results for all stakeholders. The Board, People and Culture Committee and Nomination Committee undertook the following activities to help attract, develop and retain diverse talent and to monitor the investment in developing leaders and capabilities. Activities and actions: • Upon appointment of a new CEO in FY21, reset CEO remuneration downwards and in line with market expectations. During FY22, oversaw the alignment of the structure of executive remuneration at Lendlease with the new CEO’s package. • Endorsed changes to the Global Leadership Team with new external hires commencing in FY22 – Deborah Yates as Chief People Officer, Simon Dixon as Chief Financial Officer, and Penny Ransom as Group Head of Investments. • Continued the program of Board refreshment by actively reviewing Board composition against the skills matrix. Appointed Nick Collishaw to the Board effective December 2021. • Continued to oversee the implementation of the human capital strategy, review mission critical capabilities and endorsed refreshed global leadership programs. • Continued to receive reports on building a more inclusive culture and supported the introduction of a flagship program focused on acceleration of under-represented female and racial minority talent. • Received a report on the global roadmap to Wellbeing program, supported the “You Can’t Ask That” series promoting employee engagement. • Engaged with regional senior leaders through in-person and virtual meet to gain greater visibility of the emerging pool of potential internal successors to the GLT. • Introduced simplified and metricated STA KPIs for the Global CEO, GLT and Executives, with threshold, target and maximum values set. Changed the weighting of financial/non financial KPIs from 50% financial / 50% non financial to 65% financial / 35% non financial. • Approved updates to leaver treatments for the 2022 LTA so that they are aligned with market practice. Sustainability Material Issue: Managing and optimising our performance in the context of challenges facing the built environment, including climate change and social pressures such as population growth and housing affordability. The Board and Sustainability Committee engaged in the following activities to help deliver inclusive, healthy and adaptable places that can thrive through change. Activities and actions: • Received quarterly reports tracking progress against the Group’s two sustainability targets to reflect the Group’s commitment to: – A ‘Net Zero Carbon’ for scope 1 and 2 emissions by 2025, and ‘Absolute Zero Carbon’ by 2040 – Delivering $250m of measured social value by 2025. • Received regular reports on ethical supply chain within the Group to ameliorate the risk of material substitution and modern slavery. Encouraged management to adopt the recommendations from ACSI to enhance disclosure for the 2021 Modern Slavery Statement, which was lodged in December 2021. • Reviewed the Group’s strategy in relation to social and affordable housing. • Conducted a deep dive review of the ESG reporting frameworks and indices to understand in further detail various reporting and rating schemes and the gaps in reporting by the organisation. • Continued to receive reports at every meeting on the progress against the Task Force on Climate-related Financial Disclosures risk assessment and reporting framework. • Received reports on the progress of the initiatives outlined in the Group’s second Elevate RAP.